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The Science of Getting Rich: CHAPTER VII [excerpt] by Wallace D. Wattles #Gratitude

--- Gratitude THE ILLUSTRATIONS GIVEN IN THE LAST CHAPTER will have conveyed to the reader the fact that the first step toward getting ...

Friday, August 5, 2011

Golden Ratio - Think outside the box #FX #Trading #Secret

I will give only one hint.. What you know about and how you use fibs is wrong.. You are doing what the Primary Dealers have taught you to do to their own benefit and your own detriment.

However that, having been said, does not mean that Fibonacci is not real. It is very real indeed. Especially the Golden Ratio (1.618).

Be creative when trading. When you follow the herd you will get the same results that the herd gets and we all know what that means when it comes to trading forex, far more are losing their ass than getting rich quick.

It is the actual Fibonacci numbers themselves that are important, not how the banks / financial system train you to use them..

In investing, some practitioners of technical analysis use the golden ratio to indicate support of a price level, or resistance to price increases, of a stock or commodity;

THIS is what you need to understand!

"after significant price changes up or down, new support and resistance levels are supposedly found at or near prices related to the starting price via the golden ratio."

[85] The use of the golden ratio in investing is also related to more complicated patterns described by Fibonacci numbers; see, e.g. Elliott wave principle. See Fibonacci retracement. However, other market analysts have published analyses suggesting that these percentages and patterns are not supported by the data.


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